BSA: Building societies account for over a quarter of mortgage approvals

Jessica Nangle

November 27, 2019

Building societies approved over a quarter of mortgages in Q3 2019 according to the latest lending and savings figures from the Building Societies Association (BSA).

The figures show that building societies approved over 106,000 new mortgage loans which represents 26% of the market.

In addition, building societies hold outstanding mortgage balances of £333.9bn which represents 23% of the market share and a 5% yearly rise.

Gross lending was £15.9bn, whilst net lending was £2.1bn in Q3 2019.

Building societies hold savings balances of £291bn which is up 4% from figures seen in 2018.

Savings balances increased by £1.3bn which represents a 12% market share however is down 65% from Q3 2018.

Robin Fieth, chief executive at the BSA, said: “Building societies captured a high market share of lending in the mortgage market in Q3 with 23% of gross lending, and over a quarter of new mortgage approvals.

“In addition, total mortgage balances are also up 5%.

“However, despite this strong performance, lending by building societies was lower in Q3 than it was in the same period last year.

“Trends across the market also point to weaker lending year on year.

“Uncertainty over the UK’s position with the EU has undoubtedly dented consumer confidence, and people are therefore less willing to make significant financial decisions, such as buying a new home.

“Consequently there are fewer properties coming on the housing market, reducing the demand for mortgage finance.

“In the savings market, building societies took a lower share of new money from savers than in previous quarters.

“But people are saving more than they did last year thanks to wages rising faster than inflation, and the labour market remaining robust.

“This is helping to boost households’ financial resilience and should help people to save more in the coming months.”

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